Folkestone Property Market Recovery Lead By First Time Buyers

As an Estate Agent, I’d be able to retire if I had a pound for every time someone asked FTBs Leading the Folkestone Property Market Recoveryme how the Folkestone property market recovery is going.  Being an evidence-based agent, and knowing that First Time Buyers are the key to unlocking the chain of rising sales, I thought I’d sit down and run the numbers.

Before we look at local numbers to see if there’s a Folkestone Property Market recovery, we should start with the nationwide picture. Over the last 12 months in the UK, 1,061,557 properties were sold with a total value of £223.74 bn. To give that some context, ten years ago 1,581,727 properties sold with a total value of £405.56bn, so it can be seen the number of people moving house has dropped by over a third over the last decade.

Whether you are a landlord, homeowner or tenant, it’s always important to keep an eye on the Folkestone property market, not just from your point of view, but also from everyone’s point of view. Over the last 12 months, 971 properties have sold (and completed) in Folkestone, worth £213.2m. Interestingly the number of properties changing hands in Folkestone has also dropped when compared to a decade ago.

It might surprise you that first time buyers in 2017 will benefit from a slight decline in Folkestone buy-to-let investors which will, of course, fuel the Folkestone property market recovery.

Folkestone Property Market Recovery - National Figures

Those looking to buy their first home in the spring and summer of 2017 will face a far less competitive Folkestone property market than the same time of year in 2016, when the urgency to beat the buy-to-let stamp duty hike was in full swing.

Many landlords brought forward their purchases to beat the tax, and since then, the number of buy-to-let purchases has dropped slightly. First time buyers have taken advantage of that and have increased their buying. In fact, looking at the Bank of England figures, this is what UK lenders have lent on buy-to-let properties versus first time buyers over the last 12 months

  • Q4 2015 – £1bn buy-to-let mortgages vs £1.31bn for first time buyers
  • Q1 2016 – £1.35bn buy-to-let mortgages vs £1.08bn for first time buyers
  • Q2 2016 – £760m buy-to-let mortgages vs £1.28bn for first time buyers
  • Q3 2016 – £827m buy-to-let mortgages vs £1.42bn for first time buyers
Property Market Recovery

National Figures on lending to FTB’s vs BTL Landlords

When looking at the figures for Folkestone itself, first time buyers have borrowed more than £46.6m in the last 12 months to buy their first home. This is a ringing endorsement of their confidence in their jobs and the local Folkestone economy. Those 20 and 30 something’s who are considering being first time buyers in 2017 will find that the number of properties on the market hasn’t been this good in some time, meaning you have more choice of properties and less competition from so many buy-to-let landlords than a year ago.

Rightmove announced nationally that new seller enquiries are 26% up on the same time last year giving the stoutest indication that we may see a slight ease in the lack of properties on the market. When I look at the Folkestone market, at this moment in time there are an impressive 453 properties for sale, (so lots of choice). All this will be welcome news amongst Folkestone first-time buyers with a combination of a proportional reduction in new investors and landlords.

2017 will be an interesting year for all homeowners, be they buy-to-let landlords, existing homeowners or future homeowners.  If you’re considering selling, then give us a call at Martin & Co on 01303 212797, email folkestone@martinco.com or request an appraisal

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